KBank and IRPC promote sustainability with the first social swap in Thailand

KASIKORNBANK (KBank) has joined forces with IRPC Public Company Limited (IRPC) to create an innovative financial instrument aligned with ESG principles. This collaboration marks Thailand’s first interest rate swap using social governance criteria, known as the socially linked THOR (Thai Overnight Repo Rate) swap. This innovative financial instrument offers preferential interest rates if specified social impact objectives are met, reinforcing both companies’ commitment to advancing their businesses through ESG principles.

​ Mr. Tipakorn Saiphatana, Executive Vice President of KBank, said: “The Bank always places importance on promoting sustainability through innovative financial products. “With this in mind, the Bank recently launched a new financial product, which is the first of its kind in Thailand for the issuance of a THOR interest rate swap, with conditions linked to social sustainability development goals.”

“If clients meet these targets, they will receive a preferential interest rate, called social-linked THOR, designed to help clients manage financial risks while promoting sustainability within their organizations and Thai society. “This financial product underlines KBank’s commitment to operating its businesses in line with the principles of sustainable banking to drive the Thai economy and society towards sustainable growth,” he continued.

KBank, Orbix Tech and PTT join forces to launch Thailand’s first Q-Bond, leveraging blockchain technology

​ Mr. Phichin Aphiwantanaporn, Senior Executive Vice President, Accounting and Corporate Finance, IRPC Public Company Limited, said: “IRPC is committed to continuously developing and elevating its position as a role model organization in human rights, which It is part of its objective of promoting sustainable business operations. This has led to a collaborative effort to link social governance with the interest rate swap [Social-Linked THOR]allowing IRPC to manage financial risks more efficiently while promoting clear and measurable ESG initiatives. “The move sets a new standard for businesses and encourages financial innovation in the Thai capital market.”

This collaboration marks Thailand’s first interest rate swap using social governance criteria, known as the THOR swap

​ ​This collaboration marks a milestone in the promotion of innovative ESG financial instruments. It will serve as a model for other Thai companies striving to contribute to the sustainable growth of the Thai economy and society.